Exide Q2 Results: Exide Industries Limited, the country’s leading battery manufacturing company, has created a stir in the stock market with its September quarter results. The company has presented excellent figures on every front from profit to business performance. Investors immediately bought the stock as soon as the quarterly results were announced. This was the reason why the company’s shares at one point jumped more than 7 percent to Rs. 371.55 was reached.
As the business grew, the process of buying shares intensified. Around 2.15 pm, shares of Exide Industries rose 7.71 percent to Rs. was trading at 373.70. Notably, the stock had lost 10 percent in the last one month, but the second quarter results ended the slump in one fell swoop.
Excellent performance of the company on the earnings front
Exide Industries has made huge earnings in the September quarter. The company’s net profit jumped by nearly 65 percent year-on-year to Rs. 287 crores. In the same quarter last year, the company posted Rs. 174 crore profit was made. The quarter saw a decline in the company’s other income, while other expenses also increased. Despite this, the company managed to increase its profits due to strong performance and increase in sales.
If we talk about the total income i.e. income, then there has been a jump of 21.3 percent. In the September quarter of last year, the company’s revenue was Rs. 4,364 crore, which has now increased to Rs. 5,292 crores. At the same time, earnings before interest, tax, depreciation and amortization (EBITDA) rose 43.5 percent to Rs. 561 crore has been done.
How did the margin grow, where did the problem arise?
In the quarter, the company’s margin also improved by 200 basis points to 11 percent from 9 percent a year ago. According to the company management, this improvement in margins is due to cost cutting measures, deliberate price increases and increase in sales volume. The company attributed this quarter’s growth to good market demand, continued benefits from GST 2.0, lower base last year and better utilization of the ‘One Exide’ operating model.
However, due to ongoing geopolitical tensions across the world, the company’s costs are still high. Compared to the previous quarter, the market saw a decline in lead (LME) and antimony prices, but due to the weak currency, the company could not fully benefit from these cheaper raw materials.
Commercial vehicle batteries spread to Europe
The company’s core businesses saw double-digit growth during the quarter. Its automotive OEM business reported growth of more than 25 percent year-on-year for the fourth consecutive quarter. At the same time, the two-wheeler as well as four-wheeler battery replacement business witnessed double-digit growth for the fourth consecutive quarter, driven by sustained demand in the aftermarket.
In addition, the home inverter and solar segments also saw growth of more than 20 percent year-on-year for the second consecutive quarter. The company is now expanding its footprint in overseas markets as well. During this quarter, Exide took a major step to expand its industrial battery and energy storage business in Europe. For this, the company has entered into a long-term agreement with Germany’s ‘Excom Energy Solutions GmbH’.
